Intel Joins Musk’s Terafab Project with Tesla, SpaceX, xAI

24:32And data center builder Firmus Technologies has raised$505 million, valuing the Australian startup at$5.5 billion. Now, the round was led by KOTU management with participation from NVIDIA. Firmus says that the cash will go towards the rapid deployment of AI hardware based on forthcoming NVIDIA tech, but over in the Asia-Pacific region. Ed.

24:52Caroline Hyde:Well, hello again. Shares of Universal Music Group. This is the Amsterdam trading up 12 % on track for their biggest day ever, having opened up 24%. Proposal from Bill Ackman for Universal Music Group, the world's largest music company, which houses the likes of Taylor Swift, Drake and Sabrina Carpenter. It is a complicated potential deal. Bloomberg's Benoit Bertolo covers European media and entertainment joins us now. It is complicated. Unsurprising. You have Ackman, Deal and Music. It's one of the most read stories on the Bloomberg terminal. Just give us the very basics of what the proposal is.

25:30Caroline Hyde:So basically, it's a plan to merge Universal Music Group with a blank check company that Bill Eggman has created for this. It's a merger that would give a valuation of 56 billion euros to Universal. The cash component of the deal is about 9 billion. and basically what he wants to achieve is to relocate the listing from Amsterdam to New York as a primary listing. He just made a call to investor and Ackman said that it makes more sense for Universal to be listed in the U.S. given that the operational center, the decision making is made in the U.S. on the East Coast. and so that's his main point really for this deal and he said it would make more sense for analysts who cover the peers of Universal to cover the company being listed in the US.

26:28What's interesting is that of course this has got some skepticism. He can talk to investors all he likes but there's really one key investor he needs to convince who sat over in France as a billionaire. Talk to us about Vincent Bellore and whether he's going to go along with it. Yes, so he's really the main shareholder, the largest of Universal. He has about 18 % through Bolloré, his own holding, and he has another 10 % through company control. That's the media conglomerate Vivendi that Universal has been spun off actually a few years ago and listed in Amsterdam. So he has a say, and Ackman was really clear today on the call, that he has to win over Bolloré for this deal to go through.

27:14You also said that Baudouret said to him that the deal was intriguing and music to his ears. We haven't heard from Baudouret exactly on this. So we're waiting for his reaction, really. Thank you, Benoit. It's great to have you on live from Paris. We appreciate it. Coming up, Samsung earned a far stronger than expected leap in profit. This is Bloomberg Tech.

27:42Caroline Hyde:Welcome back to Bloomberg Tech. I want to take a broad look at technology stocks through the Nasdaq 100. We are off session lows, but the story is technology stocks down, oil higher. Doubts about a U.S.-Iran deal for a ceasefire. There is an 8 p.m. Eastern time deadline set by the president for Iran to agree to ceasefire terms. And that is what the market is digesting. Within that index and within the technology sector, specific movers, we've been over them. Intel is again off its session highs. It had been up almost 5 % after announcing it's joining Elon Musk's TerraFab project. You can recap that on the podcast.

28:20Caroline Hyde:And then Broadcom, it's up almost 4 % off session highs, but it has an expanded deal with Google for TPUs. And the mainstay of that is Anthropic and Anthropic's expanded use and supply of TPUs. Let's get more on that deal, what it means for the world of AI. Bluma, Shereen, Ghaffari is with us. And like, you know, you and I broke the story originally, right, that Anthropic would use TPUs to begin with. It started with one gigawatt. Now, three times that. Give us the basics of what we learned and then some more stuff about Anthropic's financials. Right. So this is a major expansion. It's going to be several gigawatts.

29:00And the context there is that the demand for Anthropic products has really shot through the roof in the past few months with the popularity of its Cloud Code coding agent, as well as now, as their head of sales recently told us, their Cloud Cowork agent, which is more for general activities beyond just coding. So as they're seeing very, very strong enterprise growth, they're going to need to ramp up that compute. And what's extraordinary has been the ramp up in their business, not only because of the context that they were having a fallout, a very public spat that's still ongoing with the Pentagon right now.

29:36But it seems actually that businesses are still coming to them for their technology. That's right. You know, as Anthropic said in its complaint in the lawsuit against the U.S. government, that feud with the Pentagon is very serious. And the company did say it put them at risk to lose customers and potentially billions in revenue. But at the same time, you know, the product growth has been remarkable. And it seems like it hasn't, at least for now, stopped them from continuing to see this very strong revenue growth on enterprise.

30:08Caroline Hyde:Serene, through your reporting, I've learned about adversarial model distillation. And you've been talking in this report about anthropic cooperating with OpenAI and Google and historically three companies that may have differing views. Explain the cooperation, what it's trying to counter, and the basic concept of adversarial model distillation. Yes. So what that means, and it sounds very complex, but really it's just the idea that an older AI model can be used to then train or teach a newer model and that the output of that original AI model is what's being used to train the new one. And this happens all the time, and it's not controversial if it's being done by a company that's developed their own software to train the next generation of software.

30:57But it is controversial when, as we're seeing, foreign firms in China and elsewhere are starting to essentially what the U.S. companies are saying is sort of rip off or copy their product and then put the Chinese product out there for free as an open-weight model. And so that's what the companies are working together on. It's rare that you see Anthropic and OpenAI, fierce rivals and Google cooperating. But on this front, as we reported, they are sharing information about how to detect when firms, especially in China, outside the US, are using this distillation technique to essentially copy the output of their models.

31:33Frontier Model Forum, they set up. Shireen Ghafari, fantastic reporting across all things AI and Anthropic. We appreciate it. Meanwhile, let's turn attention to the chips that are needed. Samsung reporting. A 755 % leap in quarterly profit to hit a record. It's driven by robust demand for those AI chips. Joining us now, Brumos Yuk-Yung Lee is here with us. An extraordinary demand for high bandwidth memory. And what's so interesting is how quickly they've turned the tides on what had been a negative narrative for them. Absolutely, that's right. So this quarter from January to March, Samsung reported preliminary earnings.

32:07That was eight times higher from the previous year. And it was higher than the high expectations. And in just one quarter, Samsung actually earned more than what it made in the entire year of 2025. And this was a preliminary earnings, so we don't have divisional breakdowns between chips, TVs, and phones. But on April 30th, the company is going to have a full earnings release and also hold a conference call.

32:31Caroline Hyde:You can put some numbers behind how much contribution the memory story and memory chips have made to that blowout prelim report. Yeah, absolutely. So this was definitely the memory story. And analysts from the CLSA and Morgan Stanley, they estimate that 90 % of its operating profit of$38 billion probably came from its memory chip division. Now, we don't have that exact detail from the company yet because this was the preliminary results. But it seems like almost like 90 % of that quarterly earnings have come from the crucial memory department. And interestingly, shares fell. Maybe some profit taking, maybe risk off with what's happening with the war in Iran.

33:14Caroline Hyde:Bloomberg's Yook Young Lee, thank you very much. With Arm's plans of selling its own chips for the first time, the company is trying to pull off its biggest shift yet, with Morgan Stanley today downgrading the company to equal weight on execution risk concerns. From smartphones to data centers, the company is chasing a$100 billion market. Tom McKenzie sat down with CEO René Haas for a deep dive specifically for Bloomberg Tech Europe. We are shifting away from being largely known for smartphones to being around the cloud and AI data centers, where in a few years, that's our largest business by far.

33:50And in five years, it'll be orders of magnitude larger than what we do in smartphones.

33:54Caroline Hyde:The next episode of Bloomberg Tech Europe is this Friday at 8.30 a.m. in London. Or you can watch it on the terminal, YouTube and on our video hub at Bloomberg.com slash video. Karen. Go watch me while coming up. Stay tuned for your Suzanne from Eclipse. joining us to talk about backing startups, powering America's re-industrialization efforts. They've been at it for years, and they've got a big new raise to announce this is Bloomberg Tech. Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds, and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios.

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37:10Caroline Hyde:Enthusiasm for backing startups. That's Caroline. That's me. Backing startups focused on Western reindustrialization is showing no sign of slowing down. The latest example, venture firm Eclipse, has raised$1.3 billion across two funds to back companies building, quote, the next era of physical industries. Think robotics, manufacturing, and energy startups, among others. Let's bring in your Susan, the founder and CEO of Eclipse. And this takes, you know, total funds way up there. Super interesting, the capital commitment to this domain, this vertical. And I thought a good place to start, Lior, is talk a little bit about the LPs, You know, where the money is coming from and how much push you are getting to participate in the deal flow in that reindustrialization movement.

38:03Caroline Hyde:Ed, great to be here and thanks for having me. We raise capital from U.S.-based LPs. It's a nonprofit organization, university endowments, foundation, hospital system, etc. We started the film 11 years ago with one goal. And our belief that the economy, that the U.S. economy needs to grow much faster, nor to a 5%. And it's going to happen only from physical industries because they are combining 85 % of the world GDP. And to tell you the truth, we kind of forget to build hard companies in this country. And we are super excited to be back in the market with capital to support founders and operators.

38:42Caroline Hyde:You've grown the firm as well in the last couple of years. Joe Pfaff came from T. Rowe Price. You have Jitembel, Charlie Mwangi, who are alumni of Rivian and Tesla in Charlie's case. What's the strategy with these two new funds and how are you going to use your talent bench to get out there, do something interesting? Yeah, we don't think ourselves as a venture capital necessarily or growth capital. We call ourselves operators with capital because we believe that in order to build companies that are manufacturing chips and building rockets and doing mining, it's required a different model. And you need an operator that was on the other side to support those founders along the journey.

39:26Caroline Hyde:And, you know, I'm joking with my friends that I used to say that this is the best time to build in this country from Henry Ford or Carnegie or post-World War II. And I actually changed my quote to this is the best time to build in this country, Priut. And we have now the five forces aligned, what we call internally the eclipse, capital, policy, technology, talent, customer demand. And those forces was not aligned in this country for us to build those type of companies. They were only aligned in one other country that compete with us, and it's China. It's interesting that you say policy is aligned.

40:02And we've just been out particularly thinking about defense tech, Lior. And for many, yes, the signals are all there. Demand is being said. But how much money is actually being allocated by the government to startups right now? How much do you need to help fill that gap with some of your follow-on funding?

40:19Caroline Hyde:Yeah, I'm actually sitting right now in a hotel in Washington, D.C., going to talk on stage with Jamie Dimon and J.P. Morgan, SRI, around Defense Production Act. And I cannot remember someone like me is visiting so often Washington, D.C. and have the CEO of the largest bank in the world allocating one and a half trillion of JP Morgan to support those businesses. So it's not only we need to do it in order to protect democracy, that, of course, should be the number one goal. The second thing is there is a significant increase of customer demands by the U.S. governments and others, as well capital.

40:57Caroline Hyde:and probably the most interesting part is the talent. The best people in the world right now wants to build companies and physical industries. Look, you've raised 1.3 billion in total and it's divided between where you're going to be allocating in growth stage. We can understand some of the winners you've already got. We've seen a phenomenal portfolio, an economy you say you've built. But where's exciting at the very early stage? Where do you want to be going out and looking for? Where does the puck move? Yeah, Caroline, it's interesting. As you can imagine, I get that question a lot of like, OK, you raise new capital, which industries you're going to invest?

41:33Caroline Hyde:And in some way, we talked about defense, building chips, building fabs, doing mining, building batteries 10 years ago. So the reality physical industries are not new things. They've been here for so long and they are combining 85 percent of the world GDP. And I think bringing those digital tools that we are all so familiar from Silicon Valley, anything from physical AI now to LLMs and others, the latest and greatest in robotics, and apply them to the physical world, you basically are going to create the largest companies in the world. I mean, you just literally in your show talked about Samsung bidding earnings.

42:08Caroline Hyde:You talked about Entropic, Google chip. You talked about my friends, Rene Haas from Arm, moving to a full stack. Everything that is interesting right now is happening in physical industries. You've done some really interesting deals. So I think about, for example, also spun out of Rivian. You took it out of Rivian early and wrote quite a large check. You've used similar mechanisms, some scourge spin-off, some others. Do you have a different way of doing things? Could we see a similar spin-off type deal out of this fund? Yeah, I remember I got the first phone call, I think, from one of our LPs in 2018.

42:47Caroline Hyde:And he was like, Lior, why the heck you're building a company you're supposed to invest? And I'm like, hey, I'm an operator. I like to build companies. I'm not going to start building companies. And I think, you know, what you're seeing, Ed, is the model of how you build companies is shifting as well. Yeah. Because just based on Caroline, great questions on the defense is you need scale out of the gate. So if you're going to take the traditional C, Series A, Series B, Series C, it's just too slow. and if there is an asset that I can spin out, if there is a talent that I can take, if there is a customer, I can build a company for that demand.

43:21Caroline Hyde:As an operators with capital, we have full flexibility. Lioris was great catching up with you. Lioris, Suzanne, thank you. Congratulations, CEO of Clips there and founder. Coming up, we've got more venture discussions to have. We speak with FPV managing partner Wesley Shan. The evolution of AI investing. This is Bloomberg Tech.

43:44Caroline Hyde:not all AI winners look like AI companies at first glance Wesley Chan has made a career betting on exactly that idea backing firms like Canva which become one of the most widely used AI design platforms Wesley Chan FPV managing partner joins us now and you're in town for HumanX which I'll be running over there shortly to speak to Anthropics Mike Krieger but that's kind of interesting like Lior Susan of Eclipse was just talking about that they look at those different domains how they'll be impacted by AI. I guess for you, a little more focused on software and how that might be impacted by AI in a positive way.

44:18Caroline Hyde:I think software is one area, but we focus on so many different areas too. We have a company called Formation Bio. That's a drug discovery and development company. And they focus on development. It's the only company we know of that's using AI to predict clinical trial results. They pick drugs out, they buy drugs, and they figured out using AI that a knee drug that will regrow cartilage in your knee to prevent knee replacements. We'll make it through clinical trial. And so they're taking it through right now. It literally does regrow cartilage in your knees and it's going to prevent knee replacements.

44:47Caroline Hyde:And think about this, like friends that are skiers, friends that are runners can get rid of having that pesky knee problem when the cartilage goes. And AI found this drug and they're helping it predict through clinical trials. So that's what we invest in, things like that. Wesley, do you mind to reflect a little bit on Canva? You know, when we've spoken to various members of the leadership team, they're adding products, right? The offering is widening, and it's through AI. I think that's a pretty fair summary of how they'd put it. But they are growing and getting later stage and later stage, just track the journey.

45:17Caroline Hyde:Yeah, I invested in Canva 13 years ago and led their Series A. And most people think that Canva is a design company. And the amazing thing is Canva is an AI company today. I just saw a report. Mel told me this, that Canva is the third most accessed way people access AI. And if you think about it, every person under 35 is using Canva today, and that's how they interact with AI. Chat JPC is number one, Google's number two, Canva's number three. And I just used it the other day to go create a presentation. I said, I want to go make this presentation for one of my companies. I want to tell the story about how they're changing the world of accounting.

45:48Caroline Hyde:And I used Canva to sort of think through that presentation and use the AI tools to create that presentation. It's incredible, right? So Canva has distribution, and that's part of the biggest place where people are accessing AI today. Well, what about distributing to a wider, democratized set of investors, Wesley? You've backed it from early days, but then everyone wonders when IPOs are really going to get going. Oh, that's up to Mel. We all want her to IPO and we all want her to do very, very well. But when Mel decides that that's the right time, we will all cheer her on and support her and help her ring the bell.

46:17And so when we're thinking about those liquidity moments, you're then thinking about how you allocate recently raised funds into the next generation of Canva's. You're looking at how you're growing future needs. but where are your limits? Where is it that you catch attention right now? Because it feels as though AI is disrupting every single industry group at a rate that we just cannot really comprehend.

46:38Caroline Hyde:Yeah, it's incredible how it's affecting everything. We just did a company called Strand Therapeutics that uses AI to predict how to create cancer drugs using mRNA and to help cure versions of cancer that we used to kill people. It's incredible, right? And so companies like that, we have another company in Veda that's found multiple drugs. their next drug that they're developing, and they use AI to figure out how to find drugs out of natural ingredients. Wesley, can I jump in? Yeah, yeah. There's a lot of biotech here. There's a lot of medical application. Why are you the right person to seek out which of these startups in the medical area is the right one?

47:15I mean, your background is unique, and it's very much deeply intertwined with Google and with what we think of as software.

47:21Caroline Hyde:Yeah, you know, I was one of the founding partners of Google Ventures, and one of the great things is that Google has put billions of dollars into the healthcare companies and medical companies and life science companies, and I got to help start that team. So I've been doing it for 16 years. And then we can find these great companies like Invader or Strand. It's such a non-obvious use of AI, right? Everybody's talking about AI for presentations or AI for legal or AI for whatever else. And we're thinking about it, how do we cure life-threatening diseases using AI? And that's a very non-obvious contrarian insight.

47:48Caroline Hyde:These companies, where geographically are they concentrated? They're everywhere in the world. That's the beauty. Beta is in Boulder, Colorado. Strand is in Boston. Formation is in New York. So we don't care where the company is as long as we're working on something that changes the world significantly. What about globally, Wesley? How are we faring US ecosystem versus everywhere else? You know, a lot of people talk about China, but all the companies that we're working with are using US models and using the models behind that we're developing here. So I think the US still has a fantastic lead and we're heavily invested here in the US.

48:22Caroline Hyde:We have a few global companies. Canva is obviously in Australia. Right. But, you know, they're also using some of the models developed in the U.S. They're using their own model that they're building in Australia as well with a team they bought called Leonardo.ai. And, you know, I think you see this talent everywhere in the world. Just if we could, just ending a little bit on HumanX, you know, your reflection of the first 24 hours. You know, it was very interesting to be there last night. I was on stage with Dr. Fei-Fei Li. people very engaged with what she had to say about world models as opposed to language models what do you want to get out of this i i i think that there's such an exposure to so many people's ideas like no one no one sat there and thought that on the mobile phone we go back to mobile phone 15 years ago when i started investing right no one sat there and said like oh like we use a mobile phone to book a car right and if you think about what ai will be 10 years from now you don't know what the heck it's going to do right it might it might cure cancer it might go do something the imagination is wonderful and human x is bringing all those people together to figure out where we can use AI for things that we never imagined 10 years ago.

49:20Caroline Hyde:Wesley Chan of FPV Ventures, thank you very much. The crew of Artemis II is on their way home. The four astronauts broke the record for distance traveled by humans into deep space, 252 ,756 miles, and saw the far side of the lunar surface with their own eyes. At around 6.43 p.m. New York time Monday, the Orion spacecraft slipped behind the moon and out of radio contact with Houston. This was the moment just before. To all of you down there on Earth and around Earth, we love you from the moon. Houston copies. We'll see you on the other side. After about 40 minutes, the Orion capsule re-established contact.

50:08Caroline Hyde:Houston, we have you the same, and it is so great to hear from Earth again. The crew has been sharing their lunar observations with NASA, received the congratulations from President Trump and witnessed a solar eclipse. It's the closest humans have been to the moon in more than 50 years, Cara. Extraordinary. And look, it's the closest they've been. They want to get even closer. And this is why this mission in many ways is sort of a dress rehearsal. It's like what are we hearing about the science, the way in which we're going to get people back on it? Yeah, early as 2028, you know, to get a human or astronaut landing mission.

50:45Caroline Hyde:And the dress rehearsal, because it tests the Orion spacecraft, the SLS launch system. You know, that's why we decamped Kennedy Space Center last week. I mean, it's been emotional and very reflective of these astronauts in many ways. But there's still more days to go. Yeah, there is a geopolitical context of a race against China who wants to get to the moon in 2030. but for these three American astronauts and one Canadian, a feat of human engineering and human ability. And the world was watching, millions of them, on the live feeds last night. And now continues to do so. Meanwhile, that does it for this edition of Bloomberg Tech Ed.

51:19Caroline Hyde:Yeah, a lot to recap, a lot of breaking news, a lot in the markets with Orin-Iran and that Intel TerraFab story. Recap on the pod. You know exactly where to find it. This is Bloomberg Tech.

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